Wells Fargo Post-Mortem

One of Saber’s limited partners manages a mutual fund, and he recently told me his mistakes often come when he picks stocks of lower quality or more complex companies that look cheap, instead of paying a higher price for a great business. He calls this being “too...

Value Amidst the Blood in the Streets

Here is a passage from a note I wrote to Saber investors last week: "Be greedy when others are fearful" is the quote that is probably most often cited but yet rarely practiced in the stock market.  I rarely send out interim quarterly notes like this, and this is the...

The Fear About Low Rates

It's common sense that if you are lending money to someone for a decade, you are naturally going to want a higher interest rate than if you lend to someone who promises to pay you back in a few months. However, on certain occasions a strange phenomenon occurs: lenders...

Wells Fargo’s Big Buyback

Last week, the Federal Reserve published the results of their annual Comprehensive Capital Analysis and Review (CCAR). The CCAR and its cousin, the Dodd-Frank Act stress tests, are a big portion of the regulatory framework that the Fed uses to supervise the big banks...

Boring Investment Ideas Can Sometimes Be Beautiful

Matt made a comment in a recent post regarding Verisign’s simplicity. Not just the simplicity with its business model (and it is one of the simplest businesses I’ve ever studied), but also the simplicity of the investment itself. In other words, owning Verisign is a...